Steel Minister presents Rs 425 cr cheque to PM as SAIL's interim dividend

Union Minister of State for Steel Shri Beni Prasad Verma, on behalf of Steel Authority of India Limited (SAIL), handed over a cheque for Rs. 425.36 crore to Prime Minister Dr. Manmohan Singh yesterday, towards 12% interim dividend payment to the Government of India for the year 2010-11. Present on the occasion were Secretary (Steel) Shri P.K. Mishra, SAIL Chairman Mr. C.S. Verma and SAIL Director (Finance) Mr. Soiles Bhattacharya. The Government holds 85.82% of SAIL’s total paid-up equity capital of Rs. 4,130.40 crore.

Along with Rs. 80.74 crore as dividend tax, total payment by SAIL with respect to interim dividend to the Government works out to Rs. 506.10 crore. Besides this, total contribution made by SAIL to the national exchequer (towards excise and custom duties, corporate tax, sales tax, royalties, etc.) during the first nine months of 2010-11 was Rs. 7,737 crore.

The Board of Directors of SAIL will recommend final dividend for 2010-11 while approving the financial results for the year some time in the first quarter of FY ’12. After obtaining the approval of shareholders in Sept. ’11, final dividend would be paid to the Government and other shareholders of the company.

It is pertinent to note that since inception, SAIL has made total dividend payouts of Rs. 7,937 crore equivalent to 192% of its paid-up capital. Of this, payment to the Government of India is Rs. 6,806 crore, besides dividend tax of Rs. 1,248 crore. It may be recalled that despite pressure on steel prices and sharp increase in input costs, particularly the price of imported coking coal, SAIL achieved a turnover of Rs.33,905 crore (10% higher than the sales in the corresponding period of last year) and earned profit after tax of Rs.3374.13 crore during April-December 2010. The net worth of the company as on 31st December ’10 is Rs. 36,115 crore.